HomeMy WebLinkAbout2329 Borrower and Lender covenant and agree as follows:
I. Payment of Principal and Interest. BoROwer shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, BoROwer shall pay to Lender on the day
mu.rlhly installments of principal and interest are payable under the Note, until the Note is paid in full, n sum (herein "Funds") equal to one`
twelfth of the yearly taxes and assessments which may attain priority over this lllortgage, and ground rents on the Property, itany, plus one
twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to tirr+e by bender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
lincluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds are pledgfd as additional security for the sums secured by this
Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of F ands payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Burrower shall pny to Lender any amount necessary to make up the deficiency within :i0 days
from the date notice is mailed by Lender to BoROwer requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under
paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shah apply, no later than imrnediatety prior
to the sale of the Property or its acquisition by ixudrr, any F u++d~ held by i.ender at th a tirrr of application as z crtu6t sgainst the su.^.:s s~.ured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by [.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the N(rte, and then to interest and principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fin(•s and imp(rsitions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner providf~(I under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due. direti•tiy to the pays(, thcrefff. Burrower shall promptly furnish to Ixnder
all notices of amounts due under this parak~raph, and m the event Bornfwer shall make payment directh•. Born~wer shall promptly furnish to
Lender receipts evidencing such p:+yments. (i++ROwer shall promptly discharge am• lien which has priority over this Mortgage; provided, that
f irrower shall not Ire requirfd to discharge any such lien so long as It++Rf+w'Pr shall ages(, in writing to the payment of the obligation secured by
.uch lien in a manner acceptable to Ixnder, or shall in K+N+d f:fith contest such lien by, ordeff•nd enfon•ement of such lien in, legal prfx•eedings
which operate to present the enforcement of the lien or forfeitun• +.f the Property ur am• part ther(•of.
5. Hazard Insurance. Borrower shall kef•p the improvements now existing or hereafter er(•ct(•d on the Properh• insared against loss by
t'+re, hazards included within the term "extended cover:ge." and such other hazards as Lender may r(•yuire and in such amounts and for such
periods as Ixnder may require; pmvidf•d, that Ixndf•r shall not r(•(tuire that the amount of such rnverage exce(d that amount of coverage
n•yuired to pay the sums sfrure(1 by this Mortg:+ge.
The insurance cagier prua•iding the insur.+n(•(• shall lff• chosen h.• Burn,wer suhjf•f•t to approval h>• Lender. providf•fi, that such :+pproval
shall not be unreas(mabh• withheld. All pn•miums un insurance policies shall lx• paid in the manner pruvid(rl under paragraph'? herf•+dor, if
not paid in such manner, by Bumfwer m:+king pa}•nu•nt, when due, dirw•tlc to the insurance carrier.
All insurance policies and renewais thereof shall }x• in form acceptable to Lf•nder and shall include a standard mortgage clause in favorof
and in form acceptable to Lender. Ixnder shall have the right to hold th(• policies and n•newals thereof, and Borrower shall promptly furnish to
+.f•nder all renewal notices and all rfreipts of paid premiums. In the .,vent of loss, Burn,wer shall give prompt notice to the insurance carrier
and Lender. Ixnder may make proof of loss if nut made prompth• by Borrower.
Unless Ixnder and lioROwer otherwise agrf•e in writing, insurance pr+x•eeds shall }x• appliefl to restoration or repair of the Property
I damaged, providfd such restoration or repair is e(•onomicall}• feasible and the sf•f•unty of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible ++r if the s(•f-urity of this Mortgage would be impaired, the insurance proceeds shall be applied
to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the I'ruperty is abandoned by KoROwer, or if It+,ROwer fails to
respond to Lender within atl days from the date notice is mail(•d by I.f•ndcr b, Borrower that the insurance carver offers to settle a claim for
+nsurance benefits, Lender is authorizf•d to coll(•(•t and apph• the insurance pn+(•frds at I.ender•s option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwise :+Kree in writinK, any suf•h application of proc(eds to principal shall not extend or postpone thedue
date of the monthly installments refeRfd to in paragraphs 1 and L hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Lender, all rig}+t, title and interest of Burrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acywsitiun shall pass to Ixnder to the extent of the sums secur(~ by this
\lortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Properly; Ixawehold~; ('ondominums; Planned Unit I)evelopmenta. Borrowershall keep
:i?e Property in good repair and shall not commit waste or permit impairment nr deterior.+tion of the Property and shall comply with the
provisions of any lease if this !1[nrtgage is on a leasehold. If this Mortgage is on a writ in a condominium or a planned unit development,
Br,ROwer shall perform all Of I;ORUWPi•a Obligations under the d(•c•lar.+tion or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or plannf•(I unit development, and constituent documents. If a
c'nndominiurn or planned unit developm(nt rider is exf•c•ut(v1 by Fi+,R+rw•er and rfvord(•d together with this ZV[ortgage, the covenants and
aKref•ments of such rider shall }+f• incort,ur.+tf•d into and sh:+ll amf•nd and :supplement the covenants and agrfrmentsof this Mortgageas ifthe
rider were a part hereof.
= 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
~ action or proceeding ie commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain,
~2 insolvency, code enforcement, or arrangements or proceedings irn•olving a bankrupt or decedent, then Ixnder at Ixnder's uption,upon
notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required
mortgage insurance as a condition of making the loan secured by this Mortgage, I3ffrrower shall pay the premiums required to maintain
~ such insurance in effect until each time as the requirement for such insurance terminates in accordance with BoROwer's and Ixnder'e
written agreement or applicable taw. Borrower shall pay the amount of all mortgaKe insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless BoROwer and Lender agree to other terms of payment, such amounts shall be payable upon
notice from Ixnder to Borrower requesting payment thereof. and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless Nayment of interest at such rate would be contrary to applicable law, in which
event such amount.9 shall bear interest at the high(•st rate permissible under applicable law. Nothing contained in this paragraph 7, shall
rf~uire Ixnder W incur any expense or take any action hereunder.
ix 3i8 Pa~E 2323